Recently, blockchain intelligence firm ChainArgos unearthed some disturbing findings about the Polygon network. According to ChainArgos, suspicious transaction patterns have emerged, raising questions about Polygon’s adherence to its initial token allocation plan.
ChainArgos’ investigation revealed that multiple transactions from Polygon’s network to various exchanges appeared “questionable.” In particular, the company highlighted “anomalies” in the flow of tokens resulting from Polygon’s vesting contract, which is responsible for the systematic release of tokens.
This contract, distinct from the foundation contract governing overall allocations, has shown inconsistencies in runoff patterns. The company’s latest analysis, detailed in a series of posts on X, takes a close look at the movement of significant amounts of MATIC tokens, Polygon’s native cryptocurrency.
Related reading: Bombshell Report: Polygon Team’s Secret MATIC Sales Lead to Depressed Price
Concerns about large MATIC transfers
Investigative reporting by ChainArgos delved into token flows. The company noted that a specific portfolio received approximately 470 million MATIC from two sources: the foundation and an internal portfolio, specifically 340 million and 170 million respectively.
The largest transfer identified was linked to a wallet associated with the Plasma Bridge, including two additional transactions on untagged wallets.
Adding to the intrigue, ChainArgos noted that a sum of 178 million MATICs was transferred to major exchange Binance, with the latest transaction dated May 23, 2021. These results were confirmed by a chart from Etherscan, illustrating the token movements.
5/ All 178mm were sent from 0x30b7 to Binance.
Last transfer May 23, 2021. Check the price chart friends. pic.twitter.com/iT6CVCOxtz
– ChainArgos (@ChainArgos) January 18, 2024
In the wake of these revelations, Polygon’s native token, MATIC, has experienced significant market turbulence. Over the past week, the cryptocurrency has fallen by more than 10%, with a decline of 4.2% in the past 24 hours alone.
MATIC is valued at $0.81 as of this writing, marking an increase of just 2.5% over the past month. This bearish performance is in stark contrast to the broader altcoin market, which has generally shown substantial gains during the same period.
MATIC’s declining market position is reflected in its slide to 16th place among cryptocurrencies by market capitalization. Furthermore, its trading volume plummeted from over $1 billion last Thursday to just $493 million, indicating a significant reduction in trading activity.
The analysts’ point of view on the future of MATIC
Despite these challenges, some analysts remain optimistic about MATIC’s prospects. Crypto analyst Ali, for example, predicts a potential rebound for MATIC soon. Ali’s bullish position is based on the TD Sequential indicator, a tool for spotting trend exhaustion and impending price reversals.
Ali’s analysis suggests that the TD indicator currently signals a buying opportunity for MATIC. He argues that if buying pressure intensifies around current price levels, MATIC could experience a notable recovery.
#Polygon | TD Sequential has a buy signal on the 4-hour $MATIC chart.
A spike in buying pressure around current levels could see #MATIC rebound, potentially towards $0.88, and even as low as $0.96. pic.twitter.com/lj96zgPh7k
— Ali (@ali_charts) January 6, 2024
Its projections point to a potential climb towards the $0.88 to $0.96 range, which translates to an increase of around 16% from the current valuation. This optimistic forecast assumes that Polygon’s underlying technology and market position can overcome the recent concerns raised by ChainArgos’ results.